Casino operator Las Vegas Sands reported strong results in 17Q1, matching consensus expectations of $3.1 billion in revenue for the quarter.
The casino operator, which owns integrated resort and casino developments in Macau, Singapore and Las Vegas, reported $578 million in net income for the quarter, an increase of 41.3 percent.
Operating income increased 30.2 percent to $763 million in 17Q1, compared to $586 million in the first quarter of 2016.
According to the company, the increase in operating income was the result of stronger performance across the company’s property portfolio, partially offset by higher depreciation and amortization expenses during the quarter due primarily to the opening of The Parisian Macao in September 2016.
Consolidated net revenue was $3.1 billion, an increase of 14.3 percent, while consolidated adjusted property EBITDA increased 24.9 percent to $1.2 billion.
LVS chairman and CEO Sheldon Adelson pointed towards strong results in its Macau business, Sands China, with adjusted property EBITDA increasing 20.5 percent to $624 million.
Total net revenues for Sands China increased 15.3 percent to $1.9 billion in the quarter, while net income increased 11.9 percent to $349 million.
Union Gaming analysts pointed out that while Parisian EBITDA declined sequentially, it noted that mass table GGR at Parisian was +9 percent sequentially, outpacing market-wide sequential mass table growth of 3 percent.
“We expect continued steady improvement throughout 2017, ” noted the analysts.
“…the compelling attractions and entertainment offerings of our industry-leading Cotai Strip property portfolio… allowed us to deliver visitation growth of 30 percent across our property portfolio and to increase our hotel occupancy levels by 440 basis points compared to the year ago quarter. Our market-leading critical mass of hotel, retail and entertainment offerings on the Cotai Strip allowed us to grow our mass gaming business by 17 percent,” said Adelson in a statement.
Marina Bay Sands in Singapore reported a 32.7 percent increase in adjusted property EBITDA to $365 million, while its Las Vegas operations saw an increase of 40.2 percent in adjusted property EBITDA to $122 million.
“Las Vegas and Singapore results were above expectations. All in, we would characterize the quarter as in-line and don’t expect estimates to be up that materially,” noted Wells Fargo analysts in a report on Thursday.
The company has announced a recurring quarterly dividend of $0.73 per common share during the quarter and has announced that its next recurring quarterly dividend of $0.73 per common share will be paid on June 30, 2017.